On February 2, 2026, overnight overseas markets experienced a significant decline, reflecting investor anxiety amid various geopolitical and economic pressures. Markets in Asia, Europe, and beyond saw sharp drops as concerns about inflation and central bank policies resurfaced. In particular, the Japanese Nikkei and Hong Kong’s Hang Seng Index fell sharply, with investors reacting to weaker than expected economic data and ongoing trade tensions.
The sell-off was partly triggered by fresh inflation reports indicating persistent price pressures that could compel central banks to maintain high interest rates longer than anticipated. As the U.S. Federal Reserve remains dedicated to its inflation-targeting strategy, concerns mounted that aggressive policy measures might stifle economic growth.
European markets mirrored this negativity, with key indices like the FTSE 100 and DAX also experiencing declines. The ripple effect was felt in commodities, where oil prices dropped as fears of reduced demand grew amidst economic uncertainties.
Moreover, the geopolitical landscape contributed to investor jitters, particularly in relation to ongoing tensions in Eastern Europe and the South China Sea, which weighed heavily on market sentiment. As traders digested these developments, safe-haven assets like gold saw a modest uptick as investors sought stability amid the turbulence.
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